Business Strategic Analysis Of The Norfolk Southern Balanced Scorecard

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Norfolk Southern Balanced Scorecard The Balanced Scorecard is a business strategic planning system used by management to make decisions based on information provided about the business from four different perspectives. The first of the four perspectives is the financial perspective. Which means that we evaluate our business and conduct research from the shareholders perspective. Next is the internal business perspective, which is an internal evaluation of what the business must be good at to excel. Next is the innovation and learning perspective which is an evaluation of the firm’s ability to continue to improve and create value. The final perspective is the customer perspective, which is looking at the business activities from the customers…show more content…
The Norfolk Southern mission statement begins with, “NS aims to enhance the value of stockholders’ investment over time by providing quality freight transportation services…” (Norfolk Southern Corporation, 2015). This is the very first line of the mission statement. It shows us that Norfolk Southern Corporation is focused on the value of stockholder’s investment in our company. Over the last 5 years our stock value has gone from $59.47 to $104.68, almost doubling in value (Norfolk Southern Corporation (NSC), 2015). We have also paid dividends of $0.50 (+/- .09) per share 11 times, since August of 2011 (Norfolk Southern Corporation Dividend Date & History, 2015). Our business has historically been very successful much of the time when looking at the business from a shareholder perspective. In fact when the 2014 Annual Report was released, CEO Charles “Wick” Moorman said recently, “Our performance during the year demonstrated the increasing demand for our services, the growing value of freight rail transportation in the marketplace, and Norfolk Southern’s progress in enhancing service to meet the needs of customers and create long-term value for shareholders. (Vantuono, 2015)” It is clear that our executive management values the shareholder perspective when making strategic planning…show more content…
The railroad in its simplest form is a delivery company. We deliver goods to businesses so they can produce the products they sell to the people. Norfolk Southern understands the importance of being a link in the supply chain. If the goods we deliver do not arrive on time, our customers will not be happy and they will lose business. If this happens frequently enough, we will lose their business. Our vision statement is, “Be the safest, most customer-focused, and successful transportation company in the world” (Norfolk Southern Corporation, 2015). Being the most customer focused means knowing our internal business to serve our customers’ needs. In order to adequately fill our customers’ needs we must be aware of our internal weaknesses. In the 2014 Q4 Earnings Call, CEO Wick Moorman

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